Wesfarmers is set to unlock increased scale and productivity by combining the Target and Kmart discount department stores, resulting in a senior executive restructure.

Target managing director, Richard Pearson is moving into the group’s health division as retail director, responsible for Priceline and loyalty program. Kmart CEO, John Gualtieri will run the combined Kmart and Target stores, while group chief financial officer, Aleks Spaseska will oversee international supply chain, sourcing and property.

Arjun Puri will be responsible for Kmart’s home brand, Anko, including its international expansion, which incorporates selling direct in India and a partnership with Hudson Bay in Canada. Kmart chief information officer, Brad Blyth will continue to lead technology including the migration of Target’s systems.

Kmart Group managing director, Ian Bailey, will continue to oversee the enlarged Kmart Group.

In a statement shared with Appliance Retailer, Bailey said: “While Kmart and Target have traditionally been run as two separate businesses, we’ve been operating the two closely together as part of the Kmart Group division of Wesfarmers for some time.

“We are announcing an internal reorganisation of our support offices but there are no impacts to the Kmart or Target stores. With customers now demanding value more than ever, this new operating model will unlock a new level of scale and productivity across both brands, so we can deliver even greater value to our customers in the future.

“For store networks and 50,000 store team members – it’s business as usual – as we continue to focus on providing the best value products to the thousands of customers in Australia and New Zealand who choose to shop at Kmart or Target every day.”